Indonesia’s soon-to-be launched sovereign wealth fund (SWF) is targeting US$20bil in investment in the next few months, President Joko Widodo said, a larger sum than previously announced after positive responses from several firms.
South-East Asia’s largest economy hopes to launch the sovereign wealth fund early this year to attract funds to help it get out of its pandemic-induced recession as well as finance an ambitious infrastructure drive and a massive capital relocation project.
Unlike many sovereign wealth funds set up by wealthy countries to save oil revenues or foreign exchange reserves, the Indonesian fund – like others in emerging markets – is designed to attract foreign firms as co-investors.
Finance Minister Sri Mulyani Indrawati previously said Jakarta would seed the sovereign wealth fund with US$5bil in cash and shares in state companies, with an aim to grow the fund to US$15bil by inviting foreign investors.</